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Edensoft Holdings Limited (HK:1147)
:1147
Hong Kong Market

Edensoft Holdings Limited (1147) AI Stock Analysis

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HK

Edensoft Holdings Limited

(1147)

Rating:66Neutral
Price Target:
The stock of Edensoft Holdings Limited scores 66, driven by strong technical indicators and solid financial growth, despite high valuation concerns and cash flow challenges. Addressing liquidity issues could enhance future prospects.

Edensoft Holdings Limited (1147) vs. iShares MSCI Hong Kong ETF (EWH)

Edensoft Holdings Limited Business Overview & Revenue Model

Company DescriptionEdensoft Holdings Limited, an investment holding company, operates as an integrated IT solution and cloud services provider in the People's Republic of China. The company operates in three segments: IT Infrastructure Services, IT Implementation and Supporting Services, and Cloud Services. It is involved in the provision of IT infrastructure, and technical and maintenance supporting services; design of IT solutions; and development and/or implementation of solution-based software and/or hardware products. The company also offers design, management, and technical support for using cloud platforms, which include the self-developed cloud platform and other third-party cloud platforms. The company was founded in 2002 and is headquartered in Shenzhen, China. Edensoft Holdings Limited is a subsidiary of Aztec Pearl Limited.
How the Company Makes MoneyEdensoft Holdings Limited generates revenue primarily through its IT infrastructure services and software development offerings. The company earns money by providing cloud computing services, which include subscription fees for access to cloud resources and platforms. Additionally, Edensoft charges for system integration services, where it helps businesses integrate various IT systems and ensure seamless operation. Software development projects also contribute significantly to the company's revenue, as clients pay for customized software solutions tailored to their specific business needs. Key partnerships with technology providers and vendors may also play a role in enhancing the company's service capabilities and revenue potential.

Edensoft Holdings Limited Financial Statement Overview

Summary
Edensoft Holdings Limited has shown strong revenue growth and improved net profit margins, alongside a solid equity base and low leverage. However, operational cash flows remain a challenge, which impacts overall financial health.
Income Statement
72
Positive
Edensoft Holdings Limited showed solid revenue growth of 38.88% in the latest year, with a consistent improvement in net profit margin from previous losses. The gross profit margin stood at a healthy 9.91%, and the company successfully turned a negative EBIT in 2022 into a positive EBIT margin of 1.02% in 2024. However, the EBIT and EBITDA margins remain relatively low, indicating room for operational efficiency improvements.
Balance Sheet
68
Positive
The company maintains a strong equity base, with a debt-to-equity ratio of 0.21, indicating low leverage and financial stability. The equity ratio of 45.88% suggests a balanced capital structure. However, the return on equity has been modest at approximately 4.00%, signaling potential for enhanced shareholder returns.
Cash Flow
55
Neutral
Cash flow from operations was negative in recent years, reflecting challenges in cash generation despite positive net income. The absence of free cash flow growth and negative cash flow metrics highlight concerns regarding cash management and liquidity. The company needs to focus on improving operational cash flows relative to net income.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue1.13B815.33M680.32M800.51M690.72M
Gross Profit112.29M99.14M75.56M102.01M71.30M
EBITDA11.76M11.70M-22.22M25.80M23.91M
Net Income8.02M6.14M-27.77M19.43M16.02M
Balance Sheet
Total Assets437.65M435.00M323.26M376.19M367.89M
Cash, Cash Equivalents and Short-Term Investments94.59M20.78M60.31M120.76M105.31M
Total Debt41.29M55.31M25.66M6.30M7.33M
Total Liabilities236.85M243.42M138.13M167.78M177.00M
Stockholders Equity200.79M191.63M185.13M208.40M190.90M
Cash Flow
Free Cash Flow94.09M-77.70M-93.54M14.35M35.22M
Operating Cash Flow94.13M-77.68M-93.15M14.52M35.65M
Investing Cash Flow319.00K6.66M12.15M5.03M-24.32M
Financing Cash Flow-14.64M22.36M13.39M-2.83M76.24M

Edensoft Holdings Limited Technical Analysis

Technical Analysis Sentiment
Positive
Last Price0.12
Price Trends
50DMA
0.11
Positive
100DMA
0.10
Positive
200DMA
0.09
Positive
Market Momentum
MACD
<0.01
Positive
RSI
53.82
Neutral
STOCH
65.48
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HK:1147, the sentiment is Positive. The current price of 0.12 is below the 20-day moving average (MA) of 0.12, above the 50-day MA of 0.11, and above the 200-day MA of 0.09, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 53.82 is Neutral, neither overbought nor oversold. The STOCH value of 65.48 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HK:1147.

Edensoft Holdings Limited Peers Comparison

Overall Rating
UnderperformOutperform
Sector (56)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
HK$250.11M9.734.67%3.51%7.39%142.61%
66
Neutral
HK$235.17M26.744.09%1.57%35.72%23.53%
58
Neutral
HK$179.29M-6.08%8.50%67.35%
56
Neutral
HK$13.71B5.12-5.75%5.43%9.34%-42.23%
44
Neutral
HK$222.30M-37.23%14.28%78.69%
41
Neutral
HK$212.47M
39
Underperform
HK$149.19M-253.21%79.84%-219.70%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HK:1147
Edensoft Holdings Limited
0.12
0.06
100.00%
HK:8178
China Information Technology Development
2.90
1.54
113.24%
HK:1460
ICO Group Limited
0.28
0.11
64.71%
HK:8050
Quantum Thinking Limited
0.13
-0.01
-7.14%
HK:8606
Kinetix Systems Holdings Limited
0.11
0.04
57.14%
HK:8611
Mindtell Technology Limited
0.50
0.43
614.29%

Edensoft Holdings Limited Corporate Events

Edensoft Holdings Unanimously Approves AGM Resolutions
May 23, 2025

Edensoft Holdings Limited held its Annual General Meeting on May 23, 2025, where all proposed resolutions were approved unanimously. The resolutions included the adoption of financial statements, approval of a final dividend, re-appointment of auditors, re-election of directors, and authorization for the board to fix directors’ remuneration, reflecting strong shareholder support and stable governance.

Edensoft Holdings to Hold Annual General Meeting with Key Resolutions on Agenda
Apr 25, 2025

Edensoft Holdings Limited has announced its upcoming annual general meeting scheduled for May 23, 2025, in Shenzhen, China. Key agenda items include the adoption of the 2024 financial statements, approval of a final dividend, reappointment of auditors, re-election of directors, and authorization for directors to manage share-related transactions. These decisions are poised to impact the company’s financial management and governance structure, potentially influencing shareholder value and market perception.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jun 24, 2025